CSMC employees face delay in salaries due to late GST subsidy

Chhatrapati Sambhajinagar: The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) breathed a sigh of relief as the Rs 31 crore in GST subsidies arrived, allowing for the prompt disbursement of pending salaries to its employees on Tuesday.

The CSMC faced a financial crunch this month, leading to a 20-day delay in salaries for its employees. The issue stemmed from the late arrival of the government's GST subsidy, a crucial source of funding for the corporation.

CSMC requires approximately Rs 25-26 crore monthly to cover employee salaries and pensions. However, revenue generated through property and water taxes often falls short, leaving no surplus for salaries.

This year, the GST subsidy, typically received in the first or second week, arrived after 20 days, causing anxiety among employees, particularly Class IV workers who rely on timely payments for loan installments and daily needs.

Fortunately, the government released a Rs 31 crore subsidy on Tuesday, paving the way for salary payments to begin on Wednesday morning. Meanwhile, the union leaders emphasized the need for a dedicated budget allocation for salaries to avoid future disruptions.

In response to mounting pressure from employees and trade unions, the corporation has vowed to prioritize timely salary payments, with subsidies now secured.